Flowers Foods (NYSE: FLO) yesterday reported sales for its 12-week quarter ended October 6, 2001 were $385.6 million, a 4.5% increase over the $369.1 million recorded in the same quarter a year ago. Earnings from continuing operations were $8.5 million, or $.42 per share, compared to a loss of $7.4 million, or $.37 per share, for the third quarter last year. EBITDA for the quarter was $33.0 million, or 8.6% of sales, compared to $17.4 million, or 4.7% of sales, for the comparable quarter last year. EBITDA per share was $1.64, compared to $.87 for the same quarter last year. (EBITDA as presented represents continuing operations before non- recurring items. The company had no non-recurring items in this year’s third quarter but did have such charges in the third quarter of 2000.)

Flowers Foods’ business units are Flowers Bakeries, a super-regional fresh baked foods company, and Mrs. Smith’s Bakeries, a frozen baked foods company serving retail and foodservice customers nationwide.

Flowers Bakeries reported third quarter sales of $246.4 million, a 5.5% increase over the $233.6 million reported for third quarter sales last year. Flowers Bakeries’ EBITDA from continuing operations before non-recurring items for the quarter was $27.6 million, or 11.2% of sales, compared to $20.1 million, or 8.6% of sales, reported for the comparable quarter last year.

Mrs. Smith’s Bakeries reported sales for the quarter of $139.2 million, a 2.7% increase over the $135.5 million reported last year. Mrs. Smith’s EBITDA from continuing operations before non-recurring items was $10.6 million, or 7.6% of sales, compared to $1.7 million, or 1.2% of sales for the third quarter of 2000.

Commenting on the results, Amos R. McMullian, chairman of the board and chief executive officer of Flowers Foods, said, “We are pleased with our improved performance this quarter. The company’s results are indicative not only of our competitive advantages, but also our operating strengths, as we have proven our ability to put behind us the manufacturing and marketing challenges faced by Mrs. Smith’s Bakeries in recent years. Moreover, we expect cash flow to be substantial during the fourth quarter and we intend to use that cash flow to further reduce debt.

“Although we are concerned about the slowing economy, we participate in a segment of the economy that is less likely to experience extreme fluctuations in demand. We continue to expect Flowers Bakeries to have a record year and Mrs. Smith’s Bakeries to show improvement year over year,” McMullian continued.

Headquartered in Thomasville, Ga., Flowers Foods is one of the nation’s leading producers and marketers of packaged bakery foods for retail, foodservice, in-store bakery, institutional, and vend customers. These products are sold under such brands as Mrs. Smith’s, Nature’s Own, Cobblestone Mill, and Mrs. Freshley’s. For more information on the company, visit www.flowersfoods.com.

Statements contained in this press release that are not historical facts are forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Other factors that may cause actual results to differ from the forward-looking statements contained in this release and that may affect the company’s prospects in general include, but are not limited to, changes in general economic and business conditions (including the baked foods markets), and such other factors as are described in the company’s filings with the Securities and Exchange Commission.

                                  Flowers Foods
Consolidated Statement of Income
(000’s omitted, except per share data)

For the 12 – Week Period Ended
October 6, 2001 October 7, 2000
Sales $385,589 $369,094
Materials, supplies, labor and other
production costs 205,526 214,221
Gross margin 180,063 154,873
Selling, marketing and administrative
expenses 147,026 137,425
Depreciation and amortization 16,877 15,983
Insurance proceeds, net 0 (3,105)
Non-recurring charge 0 (1,428)
Income from operations (EBIT) 16,160 5,998
Interest expense, net 4,809 16,580
Income (loss) from continuing
operations before income taxes 11,351 (10,582)
Income tax expense (benefit) 2,875 (3,182)
Income (loss) from continuing

operations 8,476 (7,400)
Income from discontinued operations* 0 20,358
Net income $8,476 $12,958

Net income (loss) from continuing
operations per share $0.42 $(0.37)
Net income from discontinued
operations per share 0.00 1.02
Net income per share $0.42 $0.65

Diluted weighted average shares
outstanding 20,194 20,074

* On March 26, 2001, Flowers Industries, Inc., whose assets and
liabilities then consisted of its holding in Keebler common stock and
certain debt and other liabilities, was acquired by Kellogg. For
financial reporting purposes, Flowers Foods is presented as the
continuing entity that includes the historical financial information of
Flowers Bakeries and Mrs. Smith’s Bakeries with Keebler presented as a
discontinued operation.

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Flowers Foods
Consolidated Statement of Income
(000’s omitted, except per share data)

For the 40 – Week Period Ended
October 6, 2001 October 7, 2000
Sales $1,221,766 $1,172,718
Materials, supplies, labor and other
production costs 655,013 663,038
Gross margin 566,753 509,680
Selling, marketing and administrative
expenses 478,654 451,196
Depreciation and amortization 54,792 50,955
Insurance proceeds, net (7,473) (4,774)
Non-recurring charge 31,087 (1,428)
Income from operations (EBIT) 9,693 13,731
Interest expense, net 28,040 52,050
(Loss) from continuing operations
before income taxes (18,347) (38,319)
Income tax (benefit) (4,846) (12,652)
(Loss) from continuing operations (13,501) (25,667)
Extraordinary gain on bonds 5,000 0
Income from discontinued operations* 0 60,911
Net (loss) income $(8,501) $35,244

Net income (loss) from continuing
operations per share $(0.67) $(1.28)
Extraordinary gain on bonds per
share 0.25 0.00
Net income from discontinued
operations per share 0.00 3.04
Net income per share $(0.42) $1.76

Diluted weighted average shares
outstanding 20,048 20,051

*On March 26, 2001, Flowers Industries, Inc., whose assets and
liabilities then consisted of its holding in Keebler common stock and
certain debt and other liabilities, was acquired by Kellogg. For
financial reporting purposes, Flowers Foods is presented as the
continuing entity that includes the historical financial information of
Flowers Bakeries and Mrs. Smith’s Bakeries with Keebler presented as a
discontinued operation.

Flowers Foods
Segment Reporting
(000’s omitted)

For the 12 – Week For the 40 – Week
Period Ended Period Ended
October 6, October 7, October 6, October 7,
2001 2000 2001 2000
Sales:
Flowers Bakeries $246,421 $233,571 $818,503 $782,257
Mrs. Smith’s Bakeries 139,168 135,523 403,263 390,461
$385,589 $369,094 $1,221,766 $1,172,718

EBITDA from Continuing
Operations before non-
recurring items:
Flowers Bakeries $27,591 $20,143 $90,106 $84,482
Mrs. Smith’s Bakeries 10,568 1,685 17,961 (8,839)
Flowers Foods (5,122) (4,380) (19,968) (17,159)
$33,037 $17,448 $88,099 $58,484

Depreciation and Amortization:
Flowers Bakeries $10,289 $9,238 $33,205 $28,884
Mrs. Smith’s Bakeries 6,545 6,699 21,443 21,650
Flowers Foods 43 46 144 421
$16,877 $15,983 $54,792 $50,955

EBIT from Continuing
Operations before non-
recurring items:
Flowers Bakeries $17,302 $10,905 $56,901 $55,598
Mrs. Smith’s Bakeries 4,023 (5,014) (3,482) (30,489)
Flowers Foods (5,165) (4,426) (20,112) (17,580)
$16,160 $1,465 $33,307 $7,529

Insurance Proceeds, net:
Mrs. Smith’s Bakeries $0 $(3,105) $(7,473) $(4,774)

Non-Recurring Charge:
Flowers Bakeries $0 $(1,428) $11,321 $(1,428)
Mrs. Smith’s Bakeries 0 0 6,641 0
Flowers Foods 0 0 13,125 0
$0 $(1,428) $31,087 $(1,428)

Flowers Foods
Condensed Consolidated Balance Sheet
(000’s omitted)

October 6, 2001
Assets
Current Assets $309,516

Property, Plant & Equipment, net 614,113

Distributor Notes Receivable
(includes $7,891 current
portion) 80,277

Other Assets 37,825

Cost in Excess of Net Tangible
Assets, net 125,048

Total Assets $1,166,779

Liabilities and Stockholders’ Equity
Current Liabilities $174,633

Senior Secured Credit Facilities
(includes $23,375 current
portion) 248,125

Obligations under Equipment
Leases (includes $5,427 current
portion) 61,412

Other Liabilities 55,969

Common Stockholders’ Equity 626,640

Total Liabilities and
Stockholders’ Equity $1,166,779